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flag Taiwan's defense spending surge sparks concern over economic strain and reduced social funding.

flag Taiwan's leader Lai Ching-te's plan to boost defense spending to over 3% of GDP and create a $40 billion special fund has raised concerns over economic strain and reduced funding for social services. flag The 2025 defense budget hit NT$949.5 billion ($30 billion), or 31% of government spending, with a record year-on-year increase. flag A $11.1 billion U.S. arms package approved in December 2024 is the largest since 1979, though over $21.5 billion in prior deals remain undelivered. flag Critics warn the push toward 5% GDP defense spending by 2030 would require an additional NT$400 billion annually—nearly matching current education and welfare budgets—while legislative delays and lack of transparency fuel concerns over fiscal responsibility and democratic oversight. flag China continues to condemn U.S. arms sales to Taiwan as interference and a threat to regional stability.

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